So what's wrong?

These are countries that are either our military enemies or countries that US taxpayers have been paying to protect for 50 or so years.

Do you think that when they own controlling interest that they will have any more power to suck the life out of this country than they have in the past?

As you probably know bella apolonia I have ranted and raved about our indebtedness to foreigners in general, but to the Central Bank of China in particular.  But I am not so sure it is all bad.

Here is a snippet of street wisdom abroad in financial circles, and apologize for the paraphrasing: If you owe the bank a small amount, the bank owns you; if you owe the bank a great deal, you own the bank. 

The glut of U.S. greenbacks in the vaults of foreign banks and other entities may be a good thing for global stability because these entities will make a real effort, out of self interest, to protect their investment; namely the U.S.of A.  

The global financial mechanism seems to be working toward equilibrium in the sense that these entities are calling in their markers, denominated in the diminishing value of the Buck, by converting them to real assets with real intrinsic value here in the United States.    

This gives them a vested interest in the well being of our economy.  

Of course if too much is owned by foreigners that could work to our disadvantage.  Unlike domestic investment (and much foreign investment for that matter) some of these sovereign funds may, and at times probably will, have political rather than economic objectives, objectives that are not in our best interest.  For that reason the type of asset, the amount and type of investment, among other things should be seriously monitored and controlled.   

But within that envelope of national sovereignty and security, this storm surge of recycled greenbacks might just be beneficial to us as well as them.  I am still studying  this and watching developments, but just maybe this is a win-win situation.  

Idoknow.  What do you think?

AZ Moderate says:  this storm surge of recycled greenbacks might just be beneficial to us as well as them. 

Coupled with the increase printing of new greenback, isn't this storm of old greenbacks just called inflation?

Yup, but nope.  Yes of course more is being churned out 24/7.  And that causes inflation, or more to the point DEVALUATION of the bucks in your pocket, because they are new lucre in the monopoly game.  Nope, because the recycled bucks have already made their contribution to inflation.  They have been in circulation and are not new lucre in the monopoly game.

This is not increasing inflation.

It is very much like the recycling of "Petrodollars" in the early 1980's.  There had been great inflation in the Carter years and the Arabs reaped huge sheaves of 'Greenbacks'.  There was a great deal of concern at the time that the world economy would not be able to digest the glut, but in fact it did.  The Petrodollars were recycled with hardly a burp over just a very few years, during a time when inflation was being reigned very firmly.  The inflation had already been wrung out of these bucks in circulation, and they did not contribute to inflationary pressures.

With the full understanding that this is a different milieu, there are similarities in this mess today.

"And yes, China owning McDonnel Douglas/ Boeing / United Tech would be bad. But bringing responsibility back to Bear Stearns and Citi would be welcome changes."  

Yes Phaedrus.  This is a point that has to be stressed: "For that reason the type of asset, the amount and type of investment, among other things should be seriously monitored and controlled."  Your concrete examples make that more explicit and understandable.  Good.

"The greed of the Wall Street Hedge Funds forced the Fed's hand and is ultimately going to hurt the average person." 

Amen Free Thinker.  I said two years ago that those of us that play by the rules and curb our own greed (don't fall for the consumer drumbeat, which cultivates personal greed in the interest of "wall street greed") and act responsibly will end up paying for the binge. 

The problem with being the responsible Average American is that the System knows where you live.  When the bill comes due, it knows just where to mail the bill. 

Maybe the illegal aliens are on to something.  The system doesn't know how many of them there are, who they are, where they are, or what they are up to.  They never get the bill.